Oregon Dept of Energy: LNG terminals increase climate change, unnecessary

In a report reviewing proposed liquefied natural gas (LNG) terminals, the Oregon Department of Energy found that LNG terminals would provide gas that is more expensive and more polluting than domestic national gas.

In short, they conclude "we believe that a finding can not be made at this time that a new LNG facility in Oregon would be in the public interest or of benefit to Oregonians."

The report finds that even as Oregon is likely to consume more natural gas in the future:

• "Liquefied natural gas ... would likely cost substantially more than natural gas produced in North America"
• "There is an over-capacity of existing LNG facilities in the United States... Japan and other Asian countries... are willing to pay as much as double the price of North American gas for LNG... It is questionable whether the capacity of any LNG facilities located in Oregon would be substantially utilized."
• "The new LNG facility in Baja California... [will have] less [carbon dioxide] impact than Oregon sites... C02 emissions from regasification at an LNG terminal... could adversely affect Oregon's ability to meet its CO2 reduction targets under state [global warming] law passed in 2007."
• Gas pipelines connecting to Rocky Mountain supplies would have less environmental impact than LNG pipelines, as they go primarily through existing right-of-way.

The report was in response to a request from the Governor's office to look at demand for natural gas, alternatives to LNG, and a review of the global warming pollution impacts of various options.

In response to the report, the Governor's office sent a press release, which reads in part:

“This report raises serious questions about whether LNG is the only source to serve an increased demand for natural gas and whether LNG terminals are in the public’s best interest both economically and environmentally,” Governor Ted Kulongoski said.

Today the Governor also filed a request with the FERC to issue a new supplemental Draft Environmental Impact Statement (DEIS) for the LNG import terminal facility at Bradwood Landing and its associated pipelines, because the project proposal has changed substantially since the draft EIS was issued August 2007 and because significant new information concerning the LNG project has been submitted by the applicants themselves.  In this request, the Governor asked FERC to also evaluate in the supplemental DEIS the new report from the Oregon Department of Energy.

“Because of substantial changes in the proposed action by Bradwood Landing, and significant new information relevant to the environmental concerns related to the proposed project, Oregon has the right under federal law to have our concerns addressed before any final federal determination is completed,” the Governor said.

Read the full report.